- The Court of Tax Appeals clarified the validity of a VAT deficiency assessment against a sole proprietor.
- The taxpayer argued the collection was time-barred due to the three-year prescriptive period.
- The CIR claimed the assessment was presumed correct and should stand.
- The court ruled the three-year prescriptive period applied, was not suspended, and the CIR failed to collect within this period.
- As a result, the collection of deficiency taxes was barred by prescription.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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